The earnings call revealed a mixed performance for Darden, with strong strategic initiatives like the Uber partnership and innovative menu additions being overshadowed by sales softness in July and challenges in key segments such as Olive Garden and Fine Dining. While operational excellence in LongHorn Steakhouse and robust employee engagement are positives, the company faces pressures from labor costs and an unexpected decline in Olive Garden sales.

Company Guidance

During the Darden Restaurants' Q1 2025 earnings call, the executives provided several key metrics and insights into their current business environment and strategic initiatives. Industry same-restaurant sales decreased by 2.5%, while same-restaurant guest counts dropped by 5.4%. Despite these challenges, Darden's brands generally outperformed the industry, with Darden's same-restaurant sales only decreasing by 1.1%, outperforming the industry by 140 basis points. Olive Garden's same-restaurant sales decreased by 2.9%, while LongHorn Steakhouse saw an increase of 3.7%. Total sales for the quarter reached $2.8 billion, a 1% increase from the previous year. Adjusted diluted net earnings per share were recorded at $1.75, and the company generated $392 million of adjusted EBITDA. The executives also discussed new initiatives, including menu innovations and a strategic partnership with Uber for delivery services aiming to enhance customer experience and potentially drive incremental sales.

Uber Direct Partnership

Darden announces a partnership with Uber Direct to offer delivery for Olive Garden, enhancing the take-out experience with transparent delivery fees and maintaining menu prices.

LongHorn Steakhouse Performance

LongHorn Steakhouse outperformed the industry with a 3.7% same-restaurant sales growth, driven by operational excellence and favorable beef costs.

Innovative Menu Additions

Various Darden brands introduced new menu items, such as Olive Garden's return of steak gorgonzola alfredo and LongHorn Steakhouse's new lemon garlic chicken, to enhance guest satisfaction.

Strong Employee Engagement

Darden's team member engagement reached an all-time high, nearly 30 points higher than the Gallup benchmark for U.S. organizations.

Adjusted EBITDA Growth

Despite soft sales, Darden generated more adjusted EBITDA than the prior year, highlighting the durability and cash generation of its business model.

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Darden Restaurants (DRI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DRI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Dec 19, 2024	2025 (Q2)	2.02 / -	1.84	―	―	―
Sep 19, 2024	2025 (Q1)	1.83 / 1.75	1.78	-1.69% (-0.03)
Jun 20, 2024	2024 (Q4)	2.61 / 2.65	2.58	2.71% (+0.07)
Mar 21, 2024	2024 (Q3)	2.62 / 2.62	2.34	11.97% (+0.28)
Dec 15, 2023	2024 (Q2)	1.74 / 1.84	1.52	21.05% (+0.32)
Sep 21, 2023	2024 (Q1)	1.74 / 1.78	1.56	14.10% (+0.22)
Jun 22, 2023	2023 (Q4)	2.54 / 2.58	2.24	15.18% (+0.34)
Mar 23, 2023	2023 (Q3)	2.25 / 2.34	1.93	21.24% (+0.41)
Dec 16, 2022	2023 (Q2)	1.44 / 1.52	1.48	2.70% (+0.04)
Sep 22, 2022	2023 (Q1)	1.56 / 1.56	1.76	-11.36% (-0.20)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DRI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Sep 19, 2024	$157.73	$170.75	+8.25%
Jun 20, 2024	$149.12	$151.40	+1.53%
Mar 21, 2024	$169.89	$158.86	-6.49%
Dec 15, 2023	$157.44	$156.86	-0.37%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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